What is the cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing department for the month of July?
The cost of tungsten carbide that will be assigned to vases finished and transferred to the finishing department for the month of July is $25,500. This is calculated by first finding the total cost of tungsten carbide, then the cost per vase, and finally multiplying it by the number of finished vases.
Calculating the Cost of Tungsten Carbide for July
Total Cost of Tungsten Carbide: The total cost of tungsten carbide purchased by Stefan Ceramics is $30,000, which is calculated by multiplying the quantity purchased (500 kgs) by the cost per kg ($60).
Cost per Vase:
The cost of tungsten carbide per vase is $7.5, which is calculated by dividing the total cost of tungsten carbide by the total number of vases manufactured (4,000 vases).
Cost Assigned to Finished Vases:
Given that 3,400 vases were completed and transferred, the cost of tungsten carbide assigned to these finished vases is $25,500, which is calculated by multiplying the cost per vase by the number of finished vases.
Therefore, the correct cost of tungsten carbide assigned to vases finished and transferred for the month of July is $25,500.